This is Why Eve Holding Inc. (EVEX) is a Buy Despite Wider Than Expected Q3 Net Loss

Eve Holding Inc. (NYSE:EVEX) is a must-buy penny stock to buy now. On November 5, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Eve Holding Inc. (NYSE:EVEX), impressed by the company’s progress in the electric Vertical Takeoff and Landing (eVTOL) market. Additionally, Cannacord Genuity analyst Austin Moeller reiterated a Buy rating on the stock on November 6 and set a $7.50 price target.

This is Why Eve Holding Inc. (EVEX) is a Buy Despite Wider Than Expected Q3 Net Loss

While the company posted a wider-than-expected net loss of $46.9 million, compared to $35.8 million in the same quarter last year, it was attributed to higher research and development expenses. Research and development expenses rose to $44.9 million compared to $32.4 million in the same quarter last year. The increase comes as the company continues to demand increased engineering engagement with Embraer.

Additionally, H.C. Wainwright notes that the company is expanding its manufacturing and testing facilities. Nevertheless, the company boasts a positive outlook, owing to its expanding list of potential customers, supplemented by a significant pipeline of orders and service opportunities. Eve Holding has also secured funding to support its development programs through 2027, raising $30 million in an equity placement.

Eve Holding, Inc. (NYSE:EVEX) develops urban air mobility (UAM) solutions, including the design and production of electric vertical take-off and landing (eVTOL) aircraft, a comprehensive global services and support network for eVTOLs, and air traffic management solutions for a UAM ecosystem.

While we acknowledge the potential of Eve Holding Inc. (NYSE:EVEX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EVEX and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.